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McDonald’s Faces Nationwide Boycott Over DEI Rollback:

McDonald’s Faces Nationwide Boycott Over DEI Rollback: What You Need to Know

New Delhi, India – June 24, 2025 – McDonald’s, the global fast-food giant, is bracing for a weeklong boycott in the United States from June 24 to June 30, 2025, led by The People’s Union USA. The grassroots advocacy group has accused the company of rolling back its diversity, equity, and inclusion (DEI) initiatives, alongside other grievances such as price gouging, tax avoidance, and unfair labor practices. This boycott, part of the group’s “Economic Blackout Tour,” has gained traction, with over 40 former Black McDonald’s franchise operators endorsing the protest. Here’s a comprehensive look at the boycott, its reasons, potential impact, and what it means for McDonald’s and the broader corporate landscape.

Why Is McDonald’s Facing a Boycott?

The People’s Union USA, founded by Chicago-based musician and meditation teacher John Schwarz, is spearheading the “McDonald’s Blackout” to hold the fast-food chain accountable for what it calls “corporate hypocrisy and exploitation.” In a June 19 Instagram post, Schwarz outlined five key reasons for the boycott:

  1. Performative DEI Practices: The group alleges that McDonald’s DEI efforts are superficial, lacking meaningful systemic change. The company scaled back its DEI initiatives in January 2025, retiring “aspirational representation goals” for its workforce, ending its supply chain’s DEI pledge, and renaming its DEI team to the “Global Inclusion Team.”
  2. Price Gouging: Critics claim McDonald’s has raised menu prices significantly, despite record profits, exploiting inflation-weary customers. Democratic senators accused the company of price gouging in a 2024 letter to its leadership.
  3. Tax Avoidance: Schwarz alleges McDonald’s exploits tax loopholes, paying less in taxes than its minimum-wage workers. In 2022, the company paid $1.3 billion to settle a tax dispute in France over illegal income diversion.
  4. Unfair Labor Practices: The group accuses McDonald’s of suppressing workers’ rights, blocking union efforts, and maintaining low wages. The company has faced criticism for lobbying against wage increases.
  5. Exploitation of Supply Chains: Schwarz claims McDonald’s exploits global supply chains and environmental loopholes, undermining equity and sustainability.

The boycott also coincides with broader discontent, including a fall 2024 E. coli outbreak linked to McDonald’s Quarter Pounders and a 2023–2024 boycott by the Boycott, Divestment, Sanctions (BDS) movement over alleged ties to Israeli military operations in Gaza.

Who Is Leading the Boycott?

The People’s Union USA describes itself as a “grassroots movement focused on economic resistance, corporate accountability, and real justice for the working class.” Since launching its Economic Blackout Tour in February 2025, the group has targeted major corporations like Amazon, Walmart, Target, and General Mills. The McDonald’s boycott has gained significant support, including endorsements from over 40 former Black McDonald’s franchise operators, who view the DEI rollback as a betrayal of the company’s diversity commitments.

Black churches and community activists, inspired by successful anti-DEI boycotts against Bud Light and Target, are also amplifying the protest. Rev. Al Sharpton, a prominent civil rights leader, has supported similar boycotts, emphasizing their effectiveness in pushing back against corporate DEI retreats.

McDonald’s DEI Rollback: What Changed?

McDonald’s began scaling back its DEI initiatives in January 2025, following a broader corporate trend influenced by political and corporate pressures. Key changes include:

  • Retiring Aspirational Goals: McDonald’s eliminated targets for hiring diverse staff and suppliers, which were set in the wake of George Floyd’s murder in 2020.
  • Ending External Surveys: The company stopped participating in external diversity surveys, such as the Human Rights Campaign’s Corporate Equality Index.
  • Rebranding DEI Team: The DEI team was renamed the “Global Inclusion Team,” signaling a shift in terminology.
  • Retaining Core Programs: Despite the rollback, McDonald’s claims it has retained core inclusion initiatives, such as internal affinity groups for employees of similar backgrounds. Jordann Nunn, McDonald’s chief field people officer, stated at a June 2025 conference, “We changed some of the language, but at the core, none of our programming has changed.”

The rollback aligns with a broader corporate retreat from DEI, driven by executive orders from the Trump administration targeting “illegal DEI” and the Supreme Court’s 2023 ruling against affirmative action in college admissions. Over 30 companies, including Amazon, Meta, and Ford, have similarly scaled back DEI programs.

Impact of the Boycott: Will It Hurt McDonald’s?

McDonald’s is already grappling with economic challenges, including a 3.6% year-over-year decline in U.S. comparable sales and a 2.6% drop in customer foot traffic in Q1 2025, according to Placer.ai data. The boycott comes at a precarious time, as the company faces declining sales, inflation-weary customers, and backlash from prior controversies.

Previous boycotts have had mixed results. The BDS-led boycott in 2023–2024 caused minor losses, while Target’s DEI rollback boycott in January 2025 led to a 2.8% quarterly sales drop, partly attributed to consumer protests. Whether the McDonald’s boycott will significantly dent sales remains uncertain, but experts suggest its success depends on public participation and media amplification. Christopher Wong Michaelson, a business ethics professor, noted, “Boycotts strike a nerve and go viral for reasons we don’t fully understand.”

On X, sentiments are polarized. Some users support the boycott, with one stating, “If McDonald’s can slash DEI, we can skip the fries. Join the June 24 boycott.” Others dismiss it, with comments like, “DEI rollbacks are practical, not prejudice. This boycott won’t change anything.”

McDonald’s Response and Future Outlook

McDonald’s has remained largely silent on the boycott, with no official statement addressing The People’s Union USA’s allegations. The company directed inquiries to its “Inclusion at McDonald’s” webpage, which emphasizes ongoing inclusion efforts. However, the boycott’s timing, coupled with endorsements from former franchisees and community leaders, could pressure McDonald’s to address the criticisms publicly.

The People’s Union USA has planned additional boycotts, including a national “economic blackout” on July 4, 2025, and month-long protests against Starbucks, Amazon, and Home Depot in July, followed by another McDonald’s boycott in August alongside Walmart and Lowe’s. This sustained campaign could amplify pressure on McDonald’s to reassess its DEI and corporate practices.

Why This Matters for the NRI Community

For the Indian diaspora, McDonald’s is a global brand with deep cultural resonance, from its India-specific menu to its role as a workplace for many NRIs in the U.S. The boycott raises questions about corporate accountability, workplace equity, and the treatment of minority communities—issues that resonate with NRIs navigating similar challenges abroad. The rollback of DEI initiatives could impact hiring and promotion opportunities for South Asians and other minorities, making this a critical issue for the community.

Conclusion

The McDonald’s boycott from June 24 to June 30, 2025, led by The People’s Union USA, underscores growing consumer frustration with corporate DEI rollbacks, price hikes, and labor practices. With endorsements from former Black franchisees and support from community activists, the protest aims to send a powerful message through “economic resistance.” As McDonald’s navigates declining sales and public backlash, the boycott’s outcome could shape its DEI strategy and influence other corporations. For NRIs and global observers, this saga highlights the intersection of corporate accountability and social justice in today’s polarized world.

Stay tuned to NRI Globe for the latest updates on global business trends, corporate controversies, and news impacting the Indian diaspora!

Keywords: McDonald’s boycott 2025, DEI rollback, The People’s Union USA, John Schwarz, McDonald’s Blackout, corporate accountability, price gouging, tax avoidance, unfair labor practices, diversity initiatives, Economic Blackout Tour, Black franchisees, US fast-food boycott

Meta Description: McDonald’s faces a nationwide boycott from June 24–30, 2025, over DEI rollbacks, price gouging, and labor practices. Learn about The People’s Union USA’s campaign and its impact at NRI Globe.

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